Property tax and fee on waste removal

The real estate property owners in Bulgaria have to pay the following annual taxes and fees:

• tax on the real estate property, popularly known as property tax, and
• fee on the household refuse (waste removal fee) for the services of collecting, removal and processing of the waste in depots or other processing constructions, and for the maintenance and cleaning of the public areas in the respective localities.

In compliance with the Local Taxes and Fees Act (LTFA), the municipalities in Bulgaria independently determine each year the size of the property tax within the range 0.1 – 4.5 per thousand from the tax evaluation of the real estate property, and waste removal fee according to an approved budget, which includes the expenses for this activity.

For 2020, the property tax rate in Sofia city is 1.875 per mile from the tax evaluation of the property. The waste removal fee for residential properties is 1.6 per mile from the tax evaluation.

For 2020, the property tax rate in Varna city is set to 2 per mile from the tax evaluation of a real estate property. The waste removal fee is 0.98 per mile from the tax evaluation.

Particulars:

• If you have declared your property as your main residence, the tax due is with 50 % lower;
• When several persons are owners of the property, a tax is due for the respective part of each of them. Each owner can pay the tax due for the entire property at the expense of the others;
• For new buildings or parts of buildings, the tax due is payable from the beginning of the month following the month of the completion of the buildings or the beginning of their use.
• In case of property transfer, the tax due is payable by the buyer from the beginning of the month following the month when the property transfer occurred, unless the tax has already been paid by the seller.

Payment deadline:

The property tax can be paid in two equal contributions from 1^st March to 30^th June and to 30^th October of the respective year for which the tax is due. For those who make advance payment of the entire tax amount from 1^st March to 30^th April, there is a 5 % discount.

Method of payment:

The local taxes are payable in cash at the cash registers of the municipal administration or through bank transfer to the respective bank account.